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The Dow Jones Industrial Average plunged 550 points on Monday amid fears of property default in China. Tech giants Advanced Micro Devices, Apple, Nvidia and Tesla sold their shares on the stock market today, as the Nasdaq seeks support from a key benchmark.
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Among the leaders of the Dow Jones, the titan of the tech Apple (AAPL) sold 1.5% on Monday, while Microsoft (MSFT) fell 1.2%. Nike (NKE) is building a new base, but is below a key technical level.
You’re here (TSLA) threatened to end a five-day winning streak on Monday, slipping 3% in morning trade. The leader in electric vehicles remains above a new entry. Among the moving stocks, the chip giants Advanced micro-systems (AMD) and Nvidia (NVDA) were down sharply after opening.
Among the best stocks to buy and watch, Mexican Grill Chipotle (CMG), Deckers (BRIDGE) and Turn (RVLV) can be found in or near shopping areas.
Deckers, Microsoft and Tesla are stocks in the IBD rankings. Revolve is a leading IPO IPO. Nike was listed in the Stocks Near A Buy Zone column last week.
Dow Jones Today: Fears of Real Estate Default in China
After the market opened on Monday, the Dow Jones Industrial Average plunged 1.6%, while the S&P 500 fell 1.7%. The high-tech Nasdaq composite sold 2% in morning trading.
Monday’s stock market weakness came amid fears over real estate developer China Evergrande Group. Investors increasingly believe Beijing will let Evergrande fail and inflict losses on its shareholders and bondholders, according to the Wall Street Journal.
Among exchange-traded funds, the Innovator IBD 50 (FFTY) was down nearly 4% on Monday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 2%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 1.7%.
The stock market rally weakens
The Nasdaq opened near its 50-day line early Monday where it will seek key support. The S&P 500 broke support at that level on Friday, while the Dow Jones Industrial Average still falls below its own 50-day line.
Friday’s The Big Picture column commented: “Even though the Nasdaq remains above its 50 day line, the weakening of the S&P 500 and the Nasdaq justifies lowering the market outlook for IBD to an” uptrend under pressure “. On the downside, this is a precautionary measure as indices and many leading stocks appear to be on the verge of potentially falling more sharply. “
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Dow Jones Stocks to Buy and Watch: Nike
Dow Jones leader Nike is charting a flat base with a buy point of 174.48, according to IBD MarketSmith’s chart analysis. But stocks are below their 50-day moving average line. Resuming support at this critical level would be bullish for the stock’s immediate outlook. Shares were down 2% on Monday.
Nike’s results are due on Thursday.
Until September 10, Nike was number 8 on the Dow Jones Industrial Average, rising more than 15%. Goldman Sachs (GS) was the first stock in the Dow Jones with a cumulative gain of 52% through September 15.
Stocks in motion: AMD, Nvidia
Chip giants Advanced Micro Devices and Nvidia were down sharply on Monday morning.
AMD stock fell 3% after opening Monday. The stocks are forming a consolidation with a buy point of 122.59, according to IBD MarketSmith chart analysis. AMD stock is right at its 10 week line. If the stock – and the market as a whole – is able to rebound, then investors can initiate a new position or add stocks to an existing position. Then, they can buy more when the stock goes above the conventional buy point. Especially in this turbulent market, it is important to get a head start on a position before new highs.
Nvidia slipped nearly 4% on Monday. The stock is expected to fall back into the 5% buy range beyond a buy point of 207.43 in a handle mug.
Stocks to buy and watch: Chipotle, Deckers, Revolve,
Friday’s IBD stock Chipotle Mexican Grill rebounded from its key 50-day moving average, although it fell 0.4% on Friday and 1% on Monday. The burrito maker traded closely after surging after profits. Look for continued support around its 10 week line which would be bullish for the stock’s outlook during the current market weakness.
According to IBD Stock Checkup, CMG stock enjoys a Perfect IBD Composite Rating of 99. The IBD Composite Rating identifies stocks with a mix of strong fundamental and technical characteristics.
IBD Leaderboard stock Deckers is trying to break above an entry of 444.58 in a flat base – according to analysis from the IBD MarketSmith chart – after Friday’s strong downside reversal. Shares slipped 3% on Monday. According to the rankings comments, the major retail stock broke a mini trendline near 433, offering an early buy point. Its line of relative strength has just reached a new high.
IPO Leader Revolve slipped around 5% on Monday, as action appears to continue higher on the right side of a new cup base. Entrance is at 74.92. In addition, an early entry at resistance near 67.80 is also in play. The first IPO title appeared in last week’s IPO Leaders article.
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Tesla shares
Tesla shares sold 3% on Monday, threatening to end a five-day winning streak. Tesla remains in the buy range above an alternate entry at 730. In recent weeks, stocks have regained their aggressive buy point of 700.10 in the depths of a correction. Meanwhile, a wide and deep base continues to take shape.
On January 25, Tesla stock hit a record high of 900.40, after climbing 93% from a buy point of 466 in a handle mug.
Dow Jones Executives: Apple, Microsoft
Among the major stocks in the Dow Jones, Apple fell about 1.5% on Monday, falling again below key support at the 50-day line.
Software giant Microsoft fell 1.2% on Monday, adding to Friday’s 1.75% drop. Stocks are just below an additional three week entry at 305.94, but could now slide back to their 50 day line.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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